Categories: Technical Analysis

Sell Euro as a major support gives way for more losses (extract from Weekly Market Forecast 23rd of November 2014)

The Euro made an attempt to trade higher against the US dollar this past week, but it failed miserably as the ECB President Mario Draghi hinted of more action the near term. This caused a downside in the EURUSD pair and it broke an important support around the 1.2400 area. This break can be considered as a bearish and that is the reason why I think selling rallies in EURUSD looks like a good option.

There was a bullish trend line on the 4 hour chart, which was breached during this past week. This trend line might act as a resistance in the near term. If the pair manage to correct higher from the current levels towards the broken support area, forms a bearish divergence on the lower timeframe, then we might consider entering into a sell trade.

Initial target should be around the 1.2350 level, and final target could be around the 1.2300 level. Stop should be placed above the 1.2480 level.

Major events scheduled in the upcoming week
The US dollar once again to a certain extent moved higher against the Euro and the British pound. The Euro was seen trading lower one more time and it looks like about to test the last low against the US dollar. The GBPUSD pair mostly consolidated in a range. The best performing US dollar pair was USDJPY. The pair jumped higher this week as well and almost challenged the 118.50 level. The economic releases in the US were mostly on the positive side, which lifted the US dollar in the near term.

Let us look at all major events lined up in the upcoming week.
Sunday – New Zealand Visitors arrival data.

Monday – German IFO business climate index, US services PMI and New Zealand inflations expectation data.

Tuesday – German GDP, US GDP, Canadian retail sales, CB consumer confidence and Australian construction work done data.

Wednesday –GFK German consumer climate, UK GDP, US durable goods orders data, US personal spending, Chicago PMI, New home sales, pending home sales and New Zealand trade balance data.

Thursday – Spanish GDP, German unemployment data and Japanese industrial production data.

Friday –German retail sales, Spanish retail sales, Euro zone CPI, unemployment rate and Canadian GDP.

This analysis is taken from Weekly Market Forecast, which also includes trade opportunities on: GBPCHF, EURGBP, USDJPY, EURJPY, GBPJPY, AUDUSD, NZDUSD, AUDNZD, EURAUD, USDCAD and AUDCAD.
Get it HERE: Vladimir’s Markets Forecast

Happy trading friends!

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Vladimir Ribakov

Following 11+ years of trading experience, trading my own accounts as well as for hedge funds and brokerages, I have decided to fulfill my destiny and to personally mentor Forex and Commodities traders. When I released the “Broker Nightmare” (software that hides trades from brokers) 8 years ago, I found an overwhelming number of frustrated people who genuinely wanted to learn how to trade the Forex market, but instead found themselves scammed and misled. Over the years I have also release other trading systems based on my trading strategies, and met a lot of people on my worldwide Forex seminars. We’ve formed a close Forex community and we meet once or twice a year in various locations in Europe.

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